Big tenanted Christchurch industrial site

A big Christchurch industrial property has been put on the market with Swiss industrialist, Thomas Trachsel selling off the last piece of his former New Zealand commercial interests.

Trachsel previously owned ASCO – a gas supply and engineering firm in Christchurch which he sold off in the early 2000s.

Although he never lived in New Zealand, Trachsel often visited Christchurch to review his business holdings which he owned for some 40 years.

Now he is selling off his last remaining New Zealand asset – a big 1.25 hectare commercial property block at 7 Canterbury St Hornby.

The land and buildings in Canterbury Street are being marketed for sale by Stewart White and Chris Frank of Bayleys Canterbury through a negotiation process running until April 14.

The property sits within the Hornby industrial precinct close to a new bulk retail development encompassing Mitre 10 Mega, Countdown, Dressmart, The Warehouse, Briscoes and The Hub mall.

This aerial view includes the large industrial complex for sale at lower right.

The Canterbury Street block is zoned for commercial retail use under Christchurch City Council’s Proposed District Plan. One side of the property consists of single level administration offices, while the middle of the property houses a high-stud heavy industry factory.

White says the two tenancies within the property generate an attractive income and are made up of: Engineering firm Holmes Solutions Ltd which is on a three-year lease expiring in 2018 with two further three-year rights of renewal; and gas services company Air Liquide Limited which is on a 10-year lease expiring in 2018.

Both companies occupy separate administration offices as well as factory space which total 5058sq m of the building combined.

“With considerable holding income from the two tenancies for the next three years at least, the timeframe will enable a prospective new owner to take a long-term planning approach to all development options,” White says.

“The city is now well-served by ample commercial options – both new-build and existing – so it’s unlikely that would be a redevelopment option. It’s more likely to be someone spotting a gap in the property market and leveraging off the size and scale this site offers.

An interior view of part of the industrial complex at 7 Canterbury St, Hornby, Christchurch.

“Alternatively, both Homes Solutions and Air Liquide, as heavy engineering companies may choose to stay on in the current premises which suit their operational needs. With few other blocks on adjacent Main South Road suitable for larger scale commercial development, a longer term holding of this site with solid tenants in place would simply increase its capital value.”

Frank says a potential rezoning from light industry to retail use could see the site reconfigured into a bulk retail destination or expanded into a warehousing facility to service the immediate retail precinct.

“Even before the earthquakes, Hornby’s retail footprint was growing – capitalising on its position close to State Highway One and servicing the growing population in West Christchurch and the Selwyn district.

“Since the earthquakes, traffic flows have increased substantially along this corridor with more housing developments to the west of the city which, in turn, supports the growth of more shops to cater to the rising population.”